Organization of a new business venture is a risky affair that should be preconditioned by the detailed analysis of the environment and the most important factors that impact the functioning and evolution of a company, bank, plant, etc. For this reason, the comprehensive investigation of all significant aspects should be considered the major task that arises when a person or organization wants to run a business.
Yet, if to speak about Israel, some essentials should be taken into consideration by a regional bank when opening an office in this very state. Besides, the new environment presupposes that the bank will face a new mentality and culture that might impact its functioning and condition the appearance of the need for a special strategy that could help it to evolve. The convergence in the approaches towards the organization of business and perspectives on the banks development might be considered the first significant challenge that should be overcome.
As stated above, Israel is characterized by unique cultural, social, and educational characteristics. Being a young state, it though has one of the most powerful and efficient educational systems in the world (Running a small business in Israel, n.d.). Its financial specialists have great competence and could be hired to improve the banks functioning. Besides, the country is also characterized by the good financial status of the majority of its citizens. This fact should be considered when creating an approach to work with clients.
Israels current political system is another factor that should be considered as it impacts the functioning of the financial sector greatly. It could be defined as a parliamentary democracy. The Prime Minister is the head of the government, and the executive power is exercised by this organ. The legislative one is vested in Knesset. 11 basic laws should be taken into account when operating in the state (Running a small business in Israel, n.d.).
The weak governments involvement in the private sector could be considered another important peculiarity of the country. Its state machine is focused on the creation of the conditions beneficial for the development of small and medium enterprises and the further evolution of the financial sector. The taxation policy could also be characterized as very friendly, and it helps people to run a new business simply and efficiently (Running a small business in Israel, n.d.).
These factors will impact the functioning of the new office greatly. First, the government policy will promote its opening and great pace of evolution. Moreover, the stable financial state of the majority of its citizens will contribute to the appearance of new customers and the great variety of opportunities for further evolution. Additionally, taxation policy could also help to evolve and obtain great benefits in the first several months of its functioning.
Besides, Israels economic system might also provide numerous opportunities for the successful development of a new business venture. It could be characterized as a market type one. It guarantees fair competition and a great level of rivalry between the most important actors. For this reason, the new entry could be considered a complicated task that should be investigated. The history of the given system is now very long. Israel appeared in the 2nd half of the 20th century. From the very beginning, it adhered to the principles of a market-driven economy and tried to create a system that could provide equal opportunities for the majority of actors. However, the state continues its evolution and tries to improve some spheres of its functioning to guarantee the further evolution of its most important aspects.
The adherence to a market-driven economy helps a county to cooperate with its international partners more efficiently. Israel has numerous contracts that help it to pump up its budget on the state level (Shamah, 2015). The countrys great involvement in international trade provides numerous opportunities for companies and corporations to finance Israels economy and help it rise. It also helps financial institutions like banks to open their offices and devote money to various companies for them to rise and contribute to the increased level of revenues.
Israeli government acts as one of the most influential agents that are interested in the conclusion of the contract as it will promote the rise of its financial power. Furthermore, numerous international contracts demand the engagement of various authorities to fulfill the obligations under the agreement and promote the further evolution of international relations and trade. It could be considered an important aspect of the local economy as the government has a beneficial impact on the state of trade and the functioning of the suggested financial institution.
The governments interest in the promotion and provision of support for the financial sector contributes to the great level of interest among international companies that look for new areas that could help them to evolve and obtain some extra revenues. For this reason, Israel is nowadays taken as a region that provides outstanding opportunities for the organization of a new business venture.
Operating in the given state, any company should also keep in mind the fact that their presence in Israel could help to contribute to the evolution of the whole region and other developing countries. Recognizing the fact that Israel cooperates with numerous states, the functioning in terms of its economic system could be estimated as the attempt to support other regions and provide them with an opportunity to obtain significant incomes.
One should also consider the fact that the country suffers from regional isolation. It is surrounded by Arab countries that could be characterized by the suspicious and negative attitude to the given state. The density of these relations should be taken into account as it might deteriorate the situation and hurt its economy (Starting a Business in Israel, n.d.). For this reason, their current aspect should be considered when making a certain decision.
However, despite this fact, there are still several other factors that precondition the choice of the given location for the opening of a local office of a certain regional bank. The attitude of the government, beneficial peculiarities of the local economy, and some other factors should be considered a good background for the evolution of the bank as the environment is one of the main factors that impact the rise of a certain project.
For this reason, as a top manager of the given institution, I could conclude that it is crucial to pursue opening an office there. It should be considered a wise decision as the stable level of incomes and perspectives related to its further evolution could evidence the great potential of the given project. Furthermore, it could help the bank to act at the international level and spread its influence to other countries. Besides, the analysis of financial risks also evidences the given statement. One realizes the fact that any company that wants to launch an international business analyzes the most important aspects that might impact it’s functioning and demand serious financing. However, as stated above, the analysis of these aspects shows that excepted incomes exceed the level of spending and guarantees great revenues.
In this regard, the main stakeholders who will take part in the opening of a new office in Israel could be satisfied with the given scenario. They will obtain numerous opportunities for the further conquering of the local financial market and enrichment. Furthermore, the stakeholders satisfaction could also rest on the great positive impact the organization of the given office might have on their image. For this reason, one could admit the absence of serious obstacles that might be faced by a new venture.
Besides, the bank should be ready to create the most efficient strategy that could help it to evolve and achieve the highlighted goals. The local presence could help it to rise and choose the best possible management strategy. The given approach will also contribute to the great efficiency of the local department and guarantee that the office will have a certain level of autonomy to be able to operate in the region.
It is also essential to choose the appropriate financing pattern to fulfill the basic needs in funds and assure that all potential customers will be provided with the services they need. That is why, in the first stages of its functioning, the project should be supported by significant assistance to help it survive and obtain the first significant revenues. Therefore, it could also adhere to patterns that imply the usage of foreign exchange. It will result in the significant growth of the efficiency of the given organization and help it to find new international partners faster. In this regard, this model could be considered vital for the evolution of the office and it’s becoming a successful business project that might bring stable and high incomes.
Yet, various currency agreements like outward forwards, or currency swaps might be suggested to help the office to make its position stronger and promote the evolution of its financial relations with other institutions. Operations with currency also impact the banks reputation and contribute to the rise of its significance.
Finally, even though the government of Israel promotes the opening of new banks and encourages new agents to work in the state, there is hardly a great need for governmental support. The system creates a beneficial atmosphere for running a new business and contributes to its evolution and survival, For this reason, specific actions from the government could hardly be expected.
Altogether, Israel could be taken as the state that provides several beneficial opportunities for the evolution of a new business venture. Its market-driven economy and governmental support should be considered the factors that attract new companies and banks to open their offices in the country. In this regard, a regional bank could be recommended to operate there as the excepted level of income exceeds potential spending and preconditions the banks evolution.
References
Running a small business in Israel. (n.d.). Web.
Shamah, D. (2015). Israeli tax burden not too onerous after all, report shows. The Times of Israel. Web.
Starting a business in Israel. (n.d.). Web.